Global Property Insight-- Feeling the strain :Macquarie Research,

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Global Property Insight
Feeling the strain
Regional total returns (%) in July and first week in August (in brackets)
rebased in US$


Global real estate outperforms in July but falls behind
in the market meltdown
In July, Global real estate securities continued their positive run, posting a total
return of +0.7%, outperforming the global equity market (-1.6%) but they failed to
maintain the momentum over last week, losing 16% with the broader equity
market falling 13%. Not surprisingly it is the US (-20%) and European (-17%)
markets that have borne the brunt of the market shake-out, with Asia less
affected. (NB figures are as at close on 8th August.)
We show the impact on valuations in the last week (page 4)
Capital market issuance
Capital market activity maintained the volumes this month, with a total of £3.6bn
raised, compared to £3.5bn in June, of which £2.5bn was for secondary issues
(£2.1bn) with North America yet again dominating; £0.2bn was for IPOs and the
bond market only saw £0.85bn of new issuance, which were from the Asian and
Americas markets.
Recommended weightings (Summary p5-8, Details p22)
Key Overweight markets – China, Hong Kong Landlords, Singapore Landlords,
US and Canada.
Key Underweight markets – Japan, Australia, Hong Kong Developers,
Singapore Developers and New Zealand.